The Self-Employment Income Support Scheme (SEISS) is currently open for applications for its third grant. People looking to claim the third grant, which covers the three-month period of November 2020 to January 2021, must make their applications on or before January 29, 2021. The months of February to April 2021 will be covered by a fourth grant under the SEISS scheme.
The Express reports that the third SEISS grant is worth 80 per cent of average monthly trading profits, capped at £7,500 in total.
The amount of the scheme’s third grant was increased to reflect the second national lockdown in England over November, and the continued difficulties businesses are facing due to the pandemic.
Chancellor Rishi Sunak said at the time: “Now, as restrictions get tougher, we are taking steps to provide further financial support to protect jobs and businesses. These changes will provide a vital safety net for people across the UK.”
Claimants of the scheme’s third grant must have been affected by coronavirus on or after November 1, 2020 to get the payment.
A number of self-employed people are excluded from the Government’s Self-Employment Income Support Scheme. SEISS is open to self-employed individuals or members of partnerships, but not to people who trade through a limited company or trust.
To get the grant, the claimant needs to earn at least half of their income from self-employment, and average trading profit must be less than £50,000 per year. Claimants must have traded in the 2018 to 2019 tax year and the 2019 to 2020 tax year to be eligible for the grant. Self Assessment tax returns for the 2018 to 2019 tax year must have been submitted on or before April 23, 2020.
The Government criteria states individuals must “be currently trading but are impacted by reduced demand due to coronavirus”. Alternatively, individuals may also “have been trading but are temporarily unable to do so due to coronavirus”.
Claimants must declare they intend to continue trading, and that they reasonably believe they will see a significant reduction in trading profits, to be eligible for the third SEISS grant.
The Self-Employment Income Support Scheme is currently only accepting applications for the third grant. The fourth SEISS grant will cover three months from February to April 2021, but HMRC has not set out when applications will open.
The Government website states HMRC “will set out further details” in due course.
HMRC has not yet stated how much the fourth SEISS grant will be worth, but this is expected to be updated in the near future.